This invention relates generally to computerized data processing systems, and, more specifically, to a computerized system for processing data for investment plans with multiple funds and multiple participants.
Many companies offer their employees the benefit of participation in one or more investment plans. These plans usually include various types of investment funds such as IRAs (Individual Retirement Accounts), 401(k) plans (investment plans with special tax advantages), and the like. Each fund type can include several investment funds (e.g., GIC, equity, stock) among which investments can be allocated. Employees can enroll in an investment plan and make contributions, transfers, and withdrawals of money at different times in various funds.
Although computerized systems exist for processing the data related to such investment plans, the management of the plans presents many problems which have not been overcome without either excessive manual intervention or undesirable constraints on investments. For example, the unit value of a fund (total money in the fund divided by number of outstanding shares) varies over time and may not be known at the time a contribution or other transaction is made. In most prior art systems, this means that transactions cannot be entered into the system until the unit value is known. Similarly, the amount of a participant's vested monies and earnings in a particular fund will generally vary over time, making it difficult to determine such amounts and to process some types of transactions at any particular time. In general, with money flowing in and out of multiple funds over time, and valuations changing frequently, it becomes difficult to maintain and retrieve accurate data and to balance the system.